An investment club is alot of fun to participate in. The first steps is getting the group together and determining how much everyone will be investing and the frequency. Once you have some money each person from the club should do some research on stocks and present them to the club with a recomendation of why to buy. The club should vote on whether to add the stock to the portfolio or not. A great resource on step by step how to set up a club, paper work and how to research stock can be found at the National Association of Investors. see their website for more information. There is a cost but the investment in the tools is well worth it.